Higher marketing costs hit Bouygues Télécom bottom line

8 Dec 2006

France’s smallest mobile network operator by subscribers, Bouygues Télécom, reported a small 2.5% fall in its EBITDA margin to 30.9% in the period January-September 2006, as a result of higher marketing costs related to its Neo and Exprima promotional offers. On the upside, the unit’s revenues climbed 1.3% in 3Q06 on the strength of the success of the two unlimited offer packages, helping the company return net profits of EUR433 million (USD575.6 million) in the nine-month period to 30 September 2006 – including a one-off gain of EUR110 million from the disposal of Bouygues Télécom Caraibe in the second quarter. Telecompaper writes that Bouygues Télécom expects its EBITDA margin to fall by about three percentage points in the full year, and that it has reduced its sales target by 1% for the EUR4.46 billion guidance figure given in September. Bouygues Télécom contributed profits of EUR388 million to the group in 9M06, up 53% from EUR254 million in the year-earlier period.

France, Bouygues Telecom